Question

If a company's gross salaries and wages are $12,000, and it withholds $1,800 for income taxes and $800 for FICA taxes, the journal entry to record the employees' pay should include a: Select one: A. credit to Salaries and Wages Payable for $12,000. B. debit to Salaries and Wages Payable for $9,400. C. debit to Salaries and Wages Expense for $9,400. D. credit to Salaries and Wages Payable for $9,400.

Answer 1

D. credit to Salaries and Wages Payable for $9,400.

Step-by-step explanation:

The journal entry is shown below:

Salaries and wages expense $12,000

To Income taxes payable $1,800

To FICA Taxes payable $800

To Salaries and wages payable $9,400

(Being the salaries and wages expense is recorded)

While recording this entry we debited the salary and wages expense as it increased the expenses account while at the same time it also increased the liabilities account so the respective accounts would be credited